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Rates of Income Tax

A. Normal Rates

  1. Tax Rates for Individuals/HUF/AOP/BOI

For A.Y. 2018-19 (Refer Notes)

Income

Rate (%)

Up to ₹ 250,000*

NIL

₹ 250,001 to ₹ 500,000

5%

₹ 500,001 to ₹ 1,000,000

20%

Above ₹ 1,000,000

30%

Surcharge of 10% applicable, if total income exceeds 
₹ 50,00,000/- and Surcharge of 15% applicable, if the total income exceeds ₹ 1,00,00,000/-.

Education Cess @ 2% and Secondary and Higher Education Cess @ 1% leviable on tax

Notes:

  1. * Threshold limit for a resident individual who is of the age of 60 years or more but less than 80 years will be ₹3,00,000/- and for a resident individual who is of the age of 80 years or more will be ₹5,00,000/-.
  2. Rebate up to ₹2,500/- from tax if taxable income is below ₹3,50,000/-, to a resident individual
  3. Marginal relief available.

For A.Y. 2019-20 (Refer Notes)

Income

Rate (%)

Up to ₹ 250,000*

NIL

₹ 250,001 to ₹ 500,000

5%

₹ 500,001 to ₹ 1,000,000

20%

Above ₹ 1,000,000

30%

Surcharge of 10% applicable, if total income exceeds ₹ 50,00,000/- and Surcharge of 15% applicable, if the total income exceeds ₹ 1,00,00,000/-.

Health and Education Cess @ 4% leviable on tax

Notes:

  1. * Threshold limit for a resident individual who is of the age of 60 years or more but less than 80 years will be ₹3,00,000/- and for a resident individual who is of the age of 80 years or more will be ₹5,00,000/-
  2. Rebate up to ₹2,500/- from tax if taxable income is below ₹3,50,000/-, to a resident individual.
  3. Marginal relief available.
  1. Tax Rates for Firms (including Limited Liability Partnership)

Asst. Year

Tax %

Surcharge %

Education Cess/Secondary & Higher Education Cess %

Total %

2018-19

30

0/12

3

30.90/34.608

2019-20

30

0/12

4*

31.20/34.944

Surcharge applicable in case of firm having a total income exceeding ₹1,00,00,000/-.

* Health and Education Cess

Notes:

  1. Marginal relief available.
  1. Tax Rates for Domestic Companies other than (a) & (b) below

Asst. Year

Tax %

Surcharge %

Education Cess/ Secondary & Higher Education Cess %

Total %

2018-19

30

0/7/12

3

30.90/33.063/ 34.608

2019-20

30

0/7/12

4*

31.2/33.384/ 34.944

Surcharge @ 7% if total income above ₹ 1,00,00,000/- and Surcharge @ 12% applicable if total income above up to 
₹ 10,00,00,000/-

* Health and Education Cess

Notes:

  1. Marginal relief available.

(a) Tax Rates for companies where turnover or gross receipts in previous year 2015-16 does not exceed  50 crores

Asst. Year

Tax %

Surcharge %

Education Cess/ Secondary & Higher Education Cess %

Total %

2018-19

25

0/7/12

3

25.75/27.5525/ 28.84

Surcharge @ 7% if total income above ₹ 1,00,00,000/- and Surcharge @ 12% applicable if total income above up to 
₹ 10,00,00,000/-

Marginal Relief available in all the above cases.

(b) Tax Rates for companies where turnover or gross receipts in previous year 2016-17 does not exceed  250 crores

Asst. Year

Tax %

Surcharge %

Education Cess/ Secondary & Higher Education Cess %

Total %

2019-20

25

0/7/12

4

26/27.82/29.12

Surcharge @ 7% if total income above ₹ 1,00,00,000/- and Surcharge @ 12% applicable if total income above up to 
₹ 10,00,00,000/-

  1. Tax Rates for foreign companies (on income other than Royalty and Fees for Technical Services)

Asst. Year

Tax %

Surcharge %

Education Cess/ Secondary & Higher Education Cess %

Total %

2018-19

40

0/2/5

3

41.20/42.024/ 43.26

2019-20

40

0/2/5

4*

41.60/42.432/ 43.68

* Health and Education Cess

Notes:

  1. Surcharge @ 2% if total income is above ₹1,00,00,000/- and up to ₹10,00,00,000/- and @ 5% if total income above ₹ 10,00,00,000/-.
  2. Marginal relief available.
  1. Dividend Distribution Tax (A.Ys. 2018-19 & 2019-20)

Income

Tax %

Surcharge %

Education Cess/ Secondary & Higher Education Cess (Health & Education Cess) %

Total %

(i) Under Section 
115-O

Other than deemed dividend u/s. 2(22)(e)

17.647

(17.647)

12

(12)

3

(4)

20.3576

(20.5552941)

(ii) U/s. 115-O applicable to deemed dividend u/s. 2(22)(e)




(30)




(12)




(4)




(34.944)

(iii) Buy-back of unlisted shares by domestic companies

20

(20)

12

(12)

3


(4)

23.072


(23.296)

Bracket is for A.Y. 2019-20

Note:

  1. Parent company will be allowed set off of dividend received from its subsidiary in computing its dividend distribution tax subject to certain conditions.
  1. Co-operative Society

Income 
A.Y. 2018-19

Rate %

Education Cess/Secondary & Higher Education Cess %

Total %

Up to ₹ 10,000

10

3

10.3

₹ 10,001 to 
₹ 20,000

20

3

20.6

₹ 20,001 and above

30

3

30.9

Income
A.Y. 2019-20

Rate %

Health Education Cess

Total %

Up to ₹ 10,000

10

4

10.40

₹ 10,001 to ₹ 20,000

20

4

20.80

₹ 20,001 and above

30

4

31.20

Assessment Year 2019-20, surcharge of 12% applicable, if total income exceeds ₹ 1,00,00,000/-.

Notes:

  1. Marginal relief available.

B. Special Rates

  1. Long Term Capital Gains

    1. On Equity shares and units

Long term capital gains arising on transfer of equity shares on a recognised stock exchange in India or units of an equity oriented Mutual Fund (if more than 65% of total proceeds of the fund are invested in equity shares), and on which Securities Transaction Tax is chargeable.

For A.Y. 2018-19

For all assessees Nil – Exempt under section 10(38).

For all Assessees

A.Y. 2019-20

Up to ₹ 1,00,000

Nil

Above ₹ 1,00,000

10%

  1. On other assets and equity shares, units except falling in (a) above for A.Ys. 2018-19 and 2019-2020

Income Tax on Long Term Capital Gains

Resident Individual or HUF

20%

Domestic Companies

20%

Non-residents

20%

NRIs (for gains u/s. 115E)

10%

Any other case

20%

Surcharge and Education Cess and Secondary Higher Education Cess, (For A.Y. 2019-20 Health and Education Cess) as applicable

Notes:

  1. In case of Resident Individual and HUF, where tax liability arises only because of the inclusion of long term capital gains, tax to be levied at 20% or 10% as the case may be, on the excess over the minimum exemption limit.
  2. No deduction under Chapter VIA (80C to 80U).
  1. Short Term Capital Gains

    1. On Equity shares and units

Short term capital gains arising on transfer of equity shares on recognised stock exchange in India or units of an Equity Oriented Mutual Fund (if more than 65% of total proceeds of the fund are invested in equity shares), 
and on which Securities Transaction Tax is chargeable.

For All Assessees

15% plus Surcharge, plus Education Cess & Secondary and Higher Education Cess (For A.Y. 2019-20 Health and Edcation Cess) as applicable

Notes:

  1. In case of resident individual and HUF, relief from STCG available in respect of the amount by which the taxable income other than STCG falls short of Basic Exemption Limit.
  2. No deduction under Chapter VI-A (80C to 80U).

b.

On Short Term Capital Gains on Assets other than in (a) above

At normal slab rates

  1. Minimum Alternate Tax payable by Companies – As a percentage of Book Profit

Type of companies

Domestic Company

Foreign Company

A.Y. 2018-19

Below  1 crore

 1 crore to 
 10 crore

Above  10 crore

Below  1 crore

 1 crore to  10 crore

Above  10 crore

Rate of Tax

18.5

18.5

18.5

18.5

18.5

18.5

Surcharge

7

12

2

5

Education Cess

3

3

3

3

3

3

Effective Rate

19.055

20.3888

21.3416

19.055

19.4361

20.0077

A.Y. 
2019-20

Below  1 crore

 1 crore to 
 10 crore

Above  10 crore

Below  1 crore

 1 crore to 
 10 crore

Above  10 crore

Rate of Tax

18.5

18.5

18.5

18.5

18.5

18.5

Surcharge

7

12

2

5

Health & Education Cess

4

4

4

4

4

4

Effective Rate

19.24

20.5868

21.5488

19.24

19.6248

20.202

Notes:

  1. MAT Credit allowed to be carried forward for set off for 15 years.
  2. Marginal relief available.
  3. Rate of Tax will be 9% if the assessee is a unit located in an International Financial Services Centre and derives income in convertible foreign exchange.
  1. Alternate Minimum Tax (AMT)

Type of Entity

Other than Companies

A.Y. 2018-19

Below  1 crore

Above  1 crore

Rate of Tax

18.5

18.5

Surcharge

12

Education Cess

3

3

Effective Rate

19.055

21.3416

A.Y. 2019-20

Below  1 crore

Above  1 crore

Rate of Tax

18.5

18.5

Surcharge

12

Health & Education Cess

4

4

Effective Rate

19.24

21.5488

Notes:

  1. AMT credit allowed to be carried forward for set off for 15 years
  2. Marginal relief available.
  3. Rate of Tax will be 9% if the assessee is a unit located in an International Financial Services Centre and derives income in convertible foreign exchange.
  1. Advance Tax

Assessment Years 
2018-19 & 2019-20

Advance Tax Obligation
(If tax payable exceeds 
 10,000)

Due Date of Instalment payable on or before

Amt. Payable as a % of Tax 
(For all Assessees)

15th June

15%

15th September

30%

15th December

30%

15th March

Balance

No advance tax to be paid by senior citizen if he/she does not have income under head "Profit and Gains of Business or Profession".

*MAT also subject to Advance Tax. Refer Circular No. 13 of 2001, [252 ITR (St) 52]

**AMT also subject to Advance tax.

 

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